Plans are quickly moving ahead for a new hotel project that is a centerpiece of the redevelopment at the Arnot Mall.

Representatives from local Holiday Inns asked the Chemung County Industrial Development Agency on Wednesday for a payment in lieu of taxes (PILOT) agreement that would help the project succeed.

After celebrating its 50th anniversary late in 2017, Arnot Mall officials announced plans to reinvent the retail juggernaut into a destination for more than just clothing and gifts.

Those plans include more restaurants, entertainment venues, and a Holiday Inn Express, which will be built after the existing Bon Ton store at the western end of the mall is torn down.

Despite the presence of several other hotels in the area, there is still a largely untapped market, said Allen Fusco, director of operations for the Elmira Holiday Inn Riverview and the Horseheads Holiday Inn Express.

"It is an opportunity to be bold. It's not about the hotel. It's about a collaboration with the mall," Fusco said. "We can help revitalize it. We're going to create new jobs as we work with the mall. We're looking to be a hub. We think we can bring bring business to the community that we don't now have access to."

The new four-story Holiday Inn Express will have 90 rooms and about 30 employees, Fusco said.

Construction will begin as soon as all the necessary approvals are in place, with a targeted opening in the spring of 2019, he said.

The project is expected to generate about $1 million in property taxes over the next 10 years.

Holiday Inn is asking the county for a PILOT agreement that would phase that amount in, so that it would pay $40,000 the first year, $80,000 the second year, and increase the payments until the full amount is reached.

Deputy Chemung County Executive Mike Krusen(Photo11: FILE PHOTO)

The IDA will schedule a public hearing on the PILOT proposal before making a decision.

The Holiday Inn Express project is a worthwhile endeavor and will be a key to the rebirth of the mall, said Southern Tier Economic Growth President Mike Krusen.

"The project is another $40 million investment at the mall," Krusen said. "The theory is to focus retail toward the center of the mall, and build out the west end as an entertainment destination. They are already changing the whole mall footprint. The hotel fits perfectly and is going to start the transformation of the mall. It probably won't be called a mall any longer. Most malls have become destinations."

In other business Wednesday, the IDA:

Heard a presentation from local labor leaders asking that area contractors be encouraged to hire local labor whenever possible.

Heard a presentation on a proposal to improve wi-fi coverage in parks and other public spaces around Elmira to benefit visitors to the area.